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Share prices

30/09/2019

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 27 September 2019. BDN financial editor Roger Willis reports.

A mood of unease in the US developed throughout the past week. It began with moves to impeach Donald Trump for an illegal attempt to cajole the Ukrainian government into dishing dirt on the son of his potential Democrat presidental election rival Joe Biden. Third-quarter data showing that the overall American economy, and consumer spending in particular, were weakening followed. And finally US-China trade tensions suddenly heightened on Friday, when it emerged that the White House was considering an exclusion of Chinese companies from US stock market listings and therefore American investment.

As a result, Wall Street share indices gradually declined. At end of play, the S&P 500 had lost 1% and the Dow Jones Industrial Average was 0.4% lower. Among powersports-related stocks, Textron took the biggest spanking, 3.4% down. Polaris sank by 1.7%. But Harley-Davidson bucked this trend, rising by 1.2%.

Northern Europe was transfixed by growing evidence of softer eurozone economic performance, principally driven by uncertainties associated to US trade warfare and the Brexit spectre. Frankfurt’s Xetra Dax index dropped by 0.7%. BMW posted a 2% retreat. Volkswagen slid further, losing 3.2%. News that Die Polizei had felt the collar of VW chief executive Herbert Diess, and he faced criminal charges of misleading shareholders over the Dieselgate emissions scandal’s financial impact, definitely didn’t help. In neighbouring Austria, KTM sank by a relatively modest 0.8%, with only very small share volumes changing hands.

Further south in Milan, the Borsa Italiana’s MIB index fell by 0.5%, lifted slightly on Friday from a more onerous fate by the revelation that Italy had successfully sold €7.5bn of new Treasury debt at record low yields. That didn’t do much good for biker shares, though. Both Piaggio and Energica were down, respectively by 0.7% and 1.3%.

Tokyo investors were unsettled by figures revealing that Japanese manufacturing activity during September was shrinking at its fastest pace in seven months, mainly attributed to the US-China trade conflict. As a result, the Nikkei 225 index closed 0.9% lower. However, Honda was the only indigenous motorcycle producer punished accordingly, losing 2.3%. Kawasaki led a charge in the opposite direction, rising by 3.3%. Suzuki and Yamaha finished respectively 2.8% and 2.4% up.

Inevitably, Chinese nerves were jangling given the increase in US belligerence, and the Shanghai SSE Composite index retreated by 2.5%. China’s 10 listed bike manufacturers copped an average decline of 3.3%. Eight of them were negative, with Lifan suffering the most severe fall of 13%. Zongshen lost 7% and Linhai 6.8%. The prominent winner was booming CFMoto, which gained 9.7% on a weekly basis and has now almost doubled in value over the past 12 months.

Indian euphoria over the previous week’s generous corporate taxation cuts had begun to subside but was still worth a further 2.1% rally for Mumbai’s BSE Sensex 30 index. Big-league biker shares were no longer clinging to the bandwagon, though. Hero MotoCorp plunged by 4.7%. TVS and Mahindra respectively lost 2.9% and 2.4%. Royal Enfield parent Eicher got away with a marginal 0.4% drop. Bajaj stayed in the black, 1% higher.

                    
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)  

USA (US dollar)

Harley-Davidson    P 35.71  C +1.39%  R 46.22 - 30.17  Y -17.76%
Polaris    P 86.66  C -0.21%  R 104.20 - 70.27  Y -11.69%
Textron    P 49.20  C -2.34%  R 72.59 - 42.30  Y -31.05%
Curtiss    P 0.20  C -2.39%  R 0.60 - 0.07  Y N/A

Notes: Polaris makes Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Textron produces own-brand ATVs. Curtiss Motorcycles, formerly Confederate Motors, makes limited-edition cruisers.

CANADA (Canadian dollar)

BRP    P 50.46  C -0.2%  R 62.17 - 32.34  Y -15.94%

Notes: Bombardier Recreational Products makes Can-Am ATVs and road trikes, Ski-Doo snowmobiles, Sea-Doo PWC and Rotax proprietary engines.

TAIWAN (Taiwanese dollar)

SYM    P 21.00  C -0.47%  R 23.50 - 19.35  Y +6.6%

Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.

VIETNAM (Hong Kong dollar)

VMEPH    0.21  C N/A  R 0.37 - 0.21  Y -41.37%

Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.

INDONESIA (rupiah)

Astra    P 6650  C -0.75%  R 8775 - 6250  Y -7.19%
Indomobil    P 1565  C -0.95%  R 3570 - 1560  Y -25.33%

Notes: Astra International is a Honda JV partner. Its controlling shareholder is British conglomerate Jardine Matheson. Indomobil Sukses Internasional is a Suzuki JV partner.

EUROPE (euro)

BMW    P 63.66  C +0.74%  R 79.44 - 57.99  Y -13.5%
VW    P 155.65  C -0.06%  R 167.40 - 128.60  Y +7.57%
KTM    P 49.60  C N/A  R 68.80 - 47.00  Y -25.77%
Piaggio    P 2.70  C -0.81%  R 2.99 - 1.69  Y +44.55%
Energica    P 2.20  C +0.46%  R 4.19 - 2.15  Y -46.86%

Notes:  Volkswagen Group owns Ducati. Energica Motor is an Italian manufacturer of electric superbikes

PAKISTAN (Pakistani rupee)

Atlas Honda    P 299.00  C -0.33%  R 450.00 - 290.67  Y N/A
Pak Suzuki    P 162.42  C +1.66%  R 340.41 - 150.65  Y N/A

Notes: Atlas Honda and Pak Suzuki are JV assembly partners.

INDIA (rupee)

Hero    P 2729.15  C -1.12%  R 3382.70 - 2225.60  Y -8.81%
Bajaj    P 2957.50  C -0.43%  R 3149.95 - 2400.00  Y +8.6%
TVS    P 412.50  C -1.28%  R 594.00 - 338.25  Y -29.24%  
Eicher    P 17,792.40  C -0.67%  R 25,617.00 - 15,196.95  Y -28.01%
Mahindra    P 555.10  C -2.09%  R 896.50 - 502.55  Y -35.84%  
Maharashtra    P 4446.45  C +0.41%  R 4786.00 - 2010.00  Y +78.31%
Scooters India    P 27.80  C -4.96%  R 41.90 - 21.20  Y -20.57%

Notes: Hero MotoCorp is India’s largest indigenous bike manufacturer. Bajaj has a major shareholding in KTM and contractual manufacturing ties with it. TVS is an own-brand manufacturer and BMW Motorrad contractor. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an own-brand bike range, a majority stake in French scooter brand Peugeot and owns formerly British BSA and Czech Jawa brand rights. Maharashtra Scooters assembles CKD scooter kits sourced from Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks.

JAPAN (yen)

Honda    P 2840  C -1.06%  R 3502 - 2412  Y -13.31%
Yamaha    P 1972  C -0.25%  R 3215 - 1657  Y -34.03%
Suzuki    P 4588  C +1.48%  R 6746 - 3501  Y -29.75%
Kawasaki    P 2419  C N/A  R 3345 - 1979  Y -21.72%

CHINA (yuan)

Qianjiang    P 9.39  C +0.21%  R 12.38 - 7.50  Y +3.76%
Zongshen    P 5.75  C +1.23%  R 10.57 - 4.08  Y +25%   
Sundiro    P 2.35  C +0.43%  R 4.44 - 1.74  Y -27.91%
CETC    P 6.20  C +0.49%  R 8.12 - 3.52  Y +27.31%
Lifan    P 3.55  C -1.11%  R 9.65 - 3.06  Y -22.66%
Loncin    P 3.59  C -0.83%  R 5.75 - 3.40  Y -25.2%
Linhai    P 6.89  C +2.68%  R 10.26 - 4.90  Y +5.35%
GAG    P 12.27  C +1.15%  R 15.00 - 10.00  Y +16.2%
CFMoto    P 31.85  C +3.41%  R 32.60 - 14.01  Y +98.84%

CHINA (Hong Kong dollar)

Jianshe    P 5.28  C +2.13%  R 8.96 - 4.20  Y -32.99%

Notes: Qianjiang owns the Keeway and Benelli brands and is a contract manufacturer for Harley-Davidson. Zongshen makes own-brand bikes and proprietary engines, including a 650cc motor licensed from Norton, and has JV partnerships with Piaggio, (scooters), and Harley-Davidson (parts). Sundiro is a Honda JV partner. CETC Energy makes Jialing-branded bikes using Honda licensed technology, lithium-ion batteries and pedelecs. Lifan makes own-brand bikes. Loncin is a Kawasaki JV partner, OEM engine contractor to BMW Motorrad and MV Agusta JV partner. Linhai and Jianshe are Yamaha JV partners. Guangzhou Automobile Group (GAG) is the parent of Honda JV partner and own-brand bike manufacturer Wuyang. CFMoto makes bikes and ATVs, exporting to the UK under the WK Bikes brand, and has a JV partnership with KTM.

MALAYSIA (ringgit)

Oriental Holdings    P 6.51  C N/A  R 6.67 - 5.65  Y +11.62%
Hong Leong    P 10.30  C -0.19%  R 11.60 - 8.32  Y -0.92%

Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.

SOUTH KOREA (won)

KR    P 500  C N/A  R 645 - 460  Y -12.13%
Daelim    P 102,500  C +1.99%  R 122,500 - 72,600  Y +25.53%

Notes: KR Motors makes Hyosung bikes and ATVs. Daelim Industrial retains a controlling 59% stake in Daelim Motor, the largest bike manufacturer in Korea. (The remainder is British, owned by Standard Chartered Bank.)